BackMaruti says Suzuki Motor preparing for start of 3rd production line in Gujarat
Suzuki Motor Gujarat manufactures cars on a contract basis for Maruti Suzuki India Limited
PremiumIndia's biggest carmaker Maruti Suzuki today said that Suzuki Motor Gujarat has started preparations to commence operations of Plant No.3 in April 2021, subject to market demand. Suzuki Motor Gujarat manufactures cars on a contract basis for Maruti Suzuki India Limited.
"This is to inform you that Suzuki Motor Gujarat Private Limited (SMG) has completed construction of its plant No. 3 at Hansalpur, Gujarat. SMG is now starting preparations to commence vehicle manufacturing (plant No 3) from April 2021 onwards. Production volume from the plant will depend upon business conditions and market demand," Maruti said in a communication to exchanges.
Maruti Suzuki reported posted strong monthly sales numbers for October, signalling that demand could be returning to the country's ailing economy during the festival period.
Maruti Suzuki, the country's biggest automaker, said it sold 182,448 vehicles in October, an increase of nearly 19% over the same period last year.
The company was hit hard by a months-long lockdown imposed in late March to slow the spread of the novel coronavirus, reporting a quarterly loss in July - the first time since its listing in 2003.
India's second-largest carmaker Hyundai said that it recorded its highest-ever domestic sales last month, selling 56,605 vehicles.
Maruti Suzuki shares were up 1.6% to ₹7,068 in noon trade.
Some Indian businesses expect a boost in sales during the country's largest shopping season, spread over the festival period of October and November, with the pandemic shutdown leading to pent-up demand.
Maruti Suzuki chairman R C Bhargava had earlier said that sales between between October and December were expected to be good due to demand for personal transport and for big-ticket purchases during the festival period.
It would, however, be hard to predict the sales situation from January, since short-term demand for cars is expected to have been largely met by then, he said.
Maruti reported a net profit of ₹1372 crore for the three months ended September 30. (With Agency Inputs)
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